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WASHINGTON, Aug. 11, 2021 (GLOBE NEWSWIRE) — ibex (NASDAQ: IBEX), a global leader in business process outsourcing (BPO) and end-to-end customer engagement technology solutions, today announced it has appointed Daniel Bellehsen as the company’s new executive vice president of investor relations and corporate development. He will report to ibex CEO Bob Dechant.

Bellehsen comes to Ibex with more than 13 years of finance and investing experience. As a portfolio manager at Columbia Threadneedle, Dan shared responsibility for the firm’s ibex investment, as one of its largest shareholders. He has been actively investing in high quality businesses over the past decade with a long-term orientation.

“I’ve had the opportunity to establish a close working relationship with Dan over the past 14 months and have quickly come to respect his return-oriented mindset and experience as a public company investor,” said Bob Dechant, CEO, ibex. “Dan provides distinct advantages in identifying high return initiatives both internally and externally to our executive leadership team and board. With a large and growing cash balance, there’s a tremendous amount of optionality here for Dan to help us grow our per share value over time. ”

“Given the enormous amount of growth ibex is experiencing after just one year as a publicly traded company, the time is right to tap Dan and his expertise to help grow the relationships with investors, while helping execute on the company’s long-term vision and business strategy,” Dechant added.

“Since being introduced to ibex well over a year ago, I’ve been thoroughly impressed with the company’s strong foundation, powerful growth engine and differentiated customer value propositions; together these factors provide a long runway for sustained growth and increases in per share value,” said Bellehsen. “The culture here has blown me away and the team continues to execute at an increasing level. All this said, there is an incredible opportunity ahead for this business, and I am eager to help unlock the company’s value in the public markets.”

“I look forward to working closely with Bob and the executive leadership team to further ibex’s growth ambitions, thoughtfully allocate capital, and build relationships with our shareholders,” he added.

About Daniel Bellehsen


Daniel Bellehsen recently served as a Portfolio Manager for Columbia Threadneedle Investments, one of the world’s largest asset managers, where his investment strategies ranked close to the top of his peer group. Previously, Mr. Bellehsen was an equity research associate for TCW and PIMCO. Prior to that, he was an associate analyst with Wells Fargo Securities, focusing on equity research within the media sector. Mr. Bellehsen received a B.B.A in business, economics, and public policy from the George Washington University. He is a member of the CFA Society of Los Angeles, New York Society of Security Analysts, and holds the Chartered Financial Analyst® designation.

About ibex


ibex delivers innovative business process outsourcing (BPO), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage, and retain valuable customers. Today, ibex operates a global contact center of scale consisting of 31 operations facilities around the world, while deploying next-generation technology to drive superior customer experiences for many of the world’s leading companies across retail, e-commerce, healthcare, fintech, utilities and logistics.   

ibex leverages its diverse global team of over 24,000 employees together with industry-leading technology, including its Wave X technology platform, to manage over 100 million critical customer interactions and driving a truly differentiated customer experience.  To learn more, visit our website at ibex.co and connect with us on LinkedIn, Facebook and Twitter. 

Media and Investor Contact:

Brad Jones
ibex
720-643-8731
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/de1073ca-2b05-4333-8c29-85b08b9a268c

Generated Strong Total Payment Volume and Revenue Growth

Software and Payments segment revenue increased by 27% year-over-year in the second quarter

Gross profit, excluding depreciation and amortization, increased 23% and Adjusted gross profit* increased 25% year-over-year in the second quarter

Raises Guidance for the Full Year 2021

LAWRENCEVILLE, N.J., Aug. 11, 2021 (GLOBE NEWSWIRE) — BTRS Holdings Inc. (“Billtrust” or “the Company”) (NASDAQ: BTRS), a B2B accounts receivable automation and integrated payments leader, today announced financial results for its second quarter ended June 30, 2021.

“I am thrilled to share that the second quarter was another great quarter, including net revenue growth of 23% year-over-year and software and payments segment growth of 27% year-over-year,” said Flint Lane, Founder and CEO of Billtrust. “The strong results were in part driven by great performance from our software and payments business fueled by our investments in sales and marketing, as well as many of the strategic investments we have made around payments and the channel.”

Lane continued, “Furthermore, we were excited to unveil the latest iteration of the Business Payments Network (“BPN”) – BPN 4.0. BPN is driving significant payment growth by connecting diverse buyers and suppliers, and now supports the delivery of invoices to over 100 Accounts Payable portals. BPN had incredible momentum before this latest improvement, and we believe this additional functionality will be a game-changer for the industry.”

Financial Highlights for the Second Quarter Ended June 30, 2021, as Compared to the Same Period in 2020

GAAP Metrics

• Total revenue increased 16.3% year-over-year to $40.2 million from $34.6 million for the same period in 2020.
• Software and payments segment revenue increased 27.0% year-over-year to $24.6 million from $19.4 million for the same period in 2020.
• Gross profit, excluding depreciation and amortization, increased 23.4% year-over-year to $22.2 million from $18.0 million for the same period in 2020.
• Gross margin, excluding depreciation and amortization, expanded by 318 basis points to 55.3% from 52.1% for the same period in 2020 driven by improved operating leverage and an increasing mix of software and payments segment revenue.
• Net loss and comprehensive loss was $(10.7) million compared to $(2.9) million for the same period in 2020.

Non-GAAP and Key Operating Metrics

• Total Payment Volume (“TPV”), the dollar value of customer payment transactions that Billtrust processes on its platform during a particular period, increased during the quarter by 47% year-over-year to $18.8 billion from $12.7 billion for the same period in 2020.
• Net revenue* increased 23.2% year-over-year to $31.6 million from $25.6 million for the same period in 2020.
• Adjusted gross profit* increased 25.3% year-over-year to $22.6 million from $18.1 million for the same period in 2020.
• Adjusted gross margin* expanded by 119 basis points to 71.7% from 70.5% for the same period in 2020.
• Adjusted EBITDA* was a loss of $(3.0) million, compared to positive $0.1 million for the same period in 2020.

Recent Business Highlights

• BPN shows accelerated growth
  • BPN TPV increased 160% year-over-year versus an increase of 146% in the first quarter of 2021
  • BPN Card volume increased 123% year-over-year
  • BPN now available to suppliers via a single subscription price for both payments and invoice delivery
• Announced the new Billtrust Global Partner Program, offering more tools to promote faster growth and enable the success of the Company’s partners and their customers
• Executed a strategic alliance agreement with Wipro, a leading global information technology, consulting and business process services company
• Added support for ACH Payment acceptance in the Company’s Collections solution as part of the Company’s #PaymentsEverywhere strategy
• Hosted the annual Billtrust Summit with over 1,000 attendees smashing the previous attendance record

Full Year 2021 Outlook

Billtrust is providing the following updated financial guidance for the full year 2021:

• Total revenue between $163 million to $167 million, including reimbursable costs revenue of $37 million, up from a previous range of $160 million to $166 million
• Net revenue* between $126 million to $130 million, which at the midpoint of $128 million would represent annual growth of approximately 18%, up from a previous range of $123 million to $129 million
• Adjusted gross profit* between $88 million to $92 million, up from a previous range of $85 million to $89 million
• Adjusted gross margin* between 70% to 71%, up from a previous range of 69% to 71%
• Adjusted EBITDA* between a loss of $(14) million to a loss of $(16) million, including additional public company costs, consistent with the previous guidance range

* Net revenue, adjusted gross profit, adjusted gross margin and adjusted EBITDA, are non-GAAP measures. An explanation of these measures and how they are calculated can be found under the heading “Non-GAAP Financial Measures” in the Company’s Quarterly Report on Form 10-Q. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in the tables at the end of this press release. With respect to the Company’s expectations under “Full Year 2021 Outlook” above, reconciliation of non-GAAP adjusted gross profit and adjusted gross margin to the comparable GAAP measure, or non-GAAP adjusted EBITDA to net loss and comprehensive loss is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain items excluded from non-GAAP adjusted gross profit and non-GAAP adjusted EBITDA, such as charges related to stock-based compensation expenses, the change in fair value of contingent consideration related to an acquisition and related tax effects, including non-recurring income tax adjustments.

Conference Call

The Company will host a conference call to discuss second quarter 2021 financial results today at 5:30 pm ET. Hosting the call will be Flint Lane, Founder and Chief Executive Officer, and Mark Shifke, Chief Financial Officer. The conference call will be webcast live from the investor relations portion of the Company’s website at https://www.billtrust.com/about/investors. The conference call can also be accessed live over the phone by dialing 877-407-3982 (toll free) or 201-493-6780 (international). A replay will be available approximately one hour after the call has concluded and can be accessed by dialing 844-512-2921 (toll free) or 412-317-6671 (international); the conference ID is 13721381. The replay will be available through Wednesday August 25, 2021.

About Billtrust

Billtrust (NASDAQ: BTRS) is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce. Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based. Billtrust is at the forefront of the digital transformation of accounts receivable, providing mission-critical solutions that span credit decisioning and monitoring, online ordering, invoice delivery, payments and remittance capture, cash application and collections. For more information, visit Billtrust.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “guidance,” “outlook“ or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Billtrust’s financial guidance and estimates and forecasts of Billtrust’s financial and performance metrics, the potential benefits, value and the commercial attractiveness to its customers of Billtrust’s products and services, Billtrust’s opportunity and ability to grow and scale its business, and Billtrust’s technology platform. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Billtrust’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions. Many actual events and circumstances are beyond the control of Billtrust. These forward-looking statements are subject to a number of risks and uncertainties, including Billtrust’s ability to attract and retain customers and expand customers’ use of Billtrust’s services; market, financial, political and legal conditions; the impact of the COVID-19 pandemic on Billtrust’s business and the global economy; risks relating to the uncertainty of the projected financial and operating information with respect to Billtrust; risks related to future market adoption of Billtrust’s offerings; risks related to Billtrust’s marketing and growth strategies; the effects of competition on Billtrust’s future business; and the risks discussed in Billtrust’s Registration Statement on Form S-1 filed on June 28, 2021, under the heading “Risk Factors” and other documents of Billtrust filed, or to be filed, with the Securities and Exchange Commission (“SEC”). If any of these risks materialize or any of Billtrust’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Billtrust presently does not know of or that Billtrust currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Billtrust’s expectations, plans or forecasts of future events and views as of the date of this press release. Billtrust anticipates that subsequent events and developments will cause Billtrust’s assessments to change. However, while Billtrust may elect to update these forward-looking statements at some point in the future, Billtrust specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Billtrust’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Measures

Some of the financial information contained in this press release has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Such financial information is identified as such within the press release. Billtrust believes that the use of these non-GAAP financial measures provides an additional tool for management and investors to use in evaluating Billtrust’s actual and projected financial condition and operating results and trends in and in comparing Billtrust’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Billtrust does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and other amounts that are required by GAAP to be recorded in Billtrust’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and other amounts are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, Billtrust presents non-GAAP financial measures in connection with GAAP results. Billtrust is not providing a reconciliation of its projected non-GAAP adjusted gross profit, non-GAAP adjusted gross margin and non-GAAP adjusted EBITDA for 2021 to the most directly comparable measure prepared in accordance with GAAP because certain items excluded from non-GAAP adjusted gross profit and non-GAAP adjusted EBITDA, such as charges related to stock-based compensation expenses, the change in fair value of contingent consideration related to an acquisition and related tax effects, including non-recurring income tax adjustments, cannot be reasonably calculated or predicted at this time. You should review Billtrust’s audited financial statements and the other financial information included in the Final Prospectus and other documents of Billtrust filed, or to be filed, with the SEC.

Net revenue (non-GAAP) is defined as total revenues, less reimbursable costs revenue.

Adjusted gross profit is defined as total revenues, less total cost of revenues excluding depreciation and amortization, plus stock based compensation expense included in total cost of revenues.

Adjusted gross margin is defined as adjusted gross profit divided by total revenues less reimbursable costs revenue or net revenue (non-GAAP).

Adjusted EBITDA is defined as net loss and comprehensive loss, plus (i) provision/benefit for income taxes, (ii) change in fair value of financial instruments and other income, (iii) interest expense and loss on extinguishment of debt, (iv) depreciation and amortization, (v) stock-based compensation expense, (vi) restructuring and severance costs, (vii) acquisition and integration costs, (viii) other capital structure transaction costs, (ix) minus interest income.

Investor Contact:
[email protected]

Media Contact:
Meredith Simpson
[email protected]

Condensed Consolidated Statements of Operations (Unaudited)
	Three Months Ended June 30,
	2021				2020
Revenues:	(in thousands)
Subscription, transaction, and services	$	31,589			$	25,646
Reimbursable costs	8,643				8,945
Total revenues	40,232				34,591
Cost of revenues:
Cost of subscription, transaction, and services	9,360				7,633
Cost of reimbursable costs	8,643				8,945
Total cost of revenues, excluding depreciation and amortization	18,003				16,578
Operating expenses:
Research and development	11,270				8,778
Sales and marketing	9,980				5,129
General and administrative	10,478				4,871
Depreciation and amortization	1,359				1,410
Total operating expenses	33,087				20,188
Loss from operations	(10,858		)		(2,175		)
Other income (expense):
Interest income	131				1
Interest expense and loss on extinguishment of debt	(3		)		(1,102		)
Change in fair value of financial instruments and other income	5				411
Total other income (expense)	133				(690		)
Loss before income taxes	(10,725		)		(2,865		)
Provision for income taxes	(11		)		(37		)
Net loss and comprehensive loss	$	(10,736	)		$	(2,902	)
Net loss per common share, basic and diluted	$	(0.07	)		$	(0.03	)
Weighted average common shares outstanding, basic and diluted	157,197				99,854

Selected Segment Information (Unaudited)
	Three Months Ended June 30,
	Print			Software and Payments			All other			Consolidated
	(in thousands)
2021
Revenues:
Subscription and transaction	$	4,490		$	24,582		$	—		$	29,072
Services and other	—			—			2,517			2,517
Subscription, transaction, and services	4,490			24,582			2,517			31,589
Reimbursable costs	8,643			—			—			8,643
Total revenues	$	13,133		$	24,582		$	2,517		$	40,232
2020
Revenues:
Subscription and transaction	$	4,448		$	19,361		$	—		$	23,809
Services and other	—			—			1,837			1,837
Subscription, transaction, and services	4,448			19,361			1,837			25,646
Reimbursable costs	8,945			—			—			8,945
Total revenues	$	13,393		$	19,361		$	1,837		$	34,591

Condensed Consolidated Statements of Cash Flows (Unaudited)
	Three Months Ended June 30,
	2021				2020
	(in thousands)
Operating activities:
Net cash provided by (used in) operating activities	$	(904	)		$	1,423
Investing activities:
Purchases of short-term investments	(20,037		)		—
Purchases of property and equipment	(617		)		(445		)
Net cash used in investing activities	(20,654		)		(445		)
Financing activities:
Payments on borrowings	—				(3,113		)
Payments of deferred purchase consideration	—				(524		)
Payments on capital lease obligations	(60		)		(66		)
Proceeds from common stock issued	2,152				129
Taxes paid on net share issuance of stock-based compensation	(258		)		—
Net cash provided by (used in) financing activities	1,834				(3,574		)
Net increase in cash, cash equivalents, and restricted cash	$	(19,724	)		$	(2,596	)
Cash, cash equivalents, and restricted cash, beginning of period	263,927				13,036
Cash, cash equivalents, and restricted cash, end of period	$	244,203			$	10,440

Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited)
	Three Months Ended June 30,								Increase
	2021				2020				(decrease)
	(in thousands)
Total revenues	$	40,232			$	34,591			16.3%
Less: Reimbursable costs revenue	8,643				8,945
Net revenue (non-GAAP)	$	31,589			$	25,646			23.2%
Total revenues	$	40,232			$	34,591
Less: Cost of revenue, excluding depreciation and amortization	18,003				16,578
Gross profit, excluding depreciation and amortization	22,229				18,013				23.4%
Add: Stock based compensation expense	405				57
Adjusted gross profit (non-GAAP)	$	22,634			$	18,070			25.3%
Gross margin, excluding depreciation and amortization	55.3		%		52.1		%
Adjusted gross margin (non-GAAP)	71.7		%		70.5		%

Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited)
	Three Months Ended June 30,
	2021				2020
	(in thousands)
Net loss and comprehensive loss	$	(10,736	)		$	(2,902	)
Provision for income taxes	11				37
Change in fair value and other (income) expense, net	(5		)		(411		)
Interest expense and loss on extinguishment of debt	3				1,102
Interest income	(131		)		(1		)
Depreciation and amortization	1,359				1,410
Stock-based compensation expense	5,706				680
Restructuring and severance	317				101
Acquisition and integration expenses	—				83
Other capital structure transaction costs	498				—
Adjusted EBITDA (non-GAAP)	$	(2,978	)		$	99

	Outlook (Mid-point) for Full Year 2021
	(in thousands)
	Total
Total revenues	$	165,000
Less: Reimbursable costs revenue	37,000
Net revenue (non-GAAP)	$	128,000

Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited) Three Months Ended June 30, 2021 and 2020
	GAAP								Stock-Based Compensation Expense								Non-GAAP Excluding Stock-Based Compensation Expense
	2021				2020				2021				2020				2021				2020
Revenues:	(in thousands)
Subscription, transaction and services	$	31,589			$	25,646											$	31,589			$	25,646
Reimbursable costs	8,643				8,945												8,643				8,945
Total revenues	40,232				34,591												40,232				34,591
Cost of revenues:
Cost of subscription, transaction and services	9,360				7,633				405				57				8,955				7,576
Cost of reimbursable costs	8,643				8,945												8,643				8,945
Total cost of revenues, excluding depreciation and amortization	18,003				16,578				405				57				17,598				16,521
Operating expenses:
Research and development	11,270				8,778				1,091				139				10,179				8,639
Sales and marketing	9,980				5,129				961				117				9,019				5,012
General and administrative	10,478				4,871				3,249				367				7,229				4,504
Depreciation and amortization	1,359				1,410												1,359				1,410
Total operating expenses	33,087				20,188				5,301				623				27,786				19,565
Loss from operations	(10,858		)		(2,175		)		5,706				680				(5,152		)		(1,495		)
Other income (expense):
Interest income	131				1												131				1
Interest expense and loss on extinguishment of debt	(3		)		(1,102		)										(3		)		(1,102		)
Change in fair value and other income (expense), net	5				411												5				411
Total other expense	133				(690		)										133				(690		)
Loss before income taxes	(10,725		)		(2,865		)		5,706				680				(5,019		)		(2,185		)
Provision for income taxes	(11		)		(37		)										(11		)		(37		)
Net loss and comprehensive loss	$	(10,736	)		$	(2,902	)		$	5,706			$	680			$	(5,030	)		$	(2,222	)

 

ATHENS, Greece, Aug. 11, 2021 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today its results for the three and six month periods ended June 30, 2021.

Second Quarter 2021 Financial Highlights:

• Total net revenues of $18.3 million. Net income of $7.9 million and net income attributable to common shareholders (after a $0.1 million dividend on Series B Preferred Shares and a $0.3 million of preferred deemed dividend arising out of the redemption of approximately $6.4 million of Series B Preferred Shares in the second quarter of 2021) of $7.6 million or $1.12 and $1.11 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders¹ for the period was $7.6 million or $1.12 per share basic and diluted.
• Adjusted EBITDA¹ was $10.3 million.
• An average of 14.00 vessels were owned and operated during the second quarter of 2021 earning an average time charter equivalent rate of $14,853 per day.

First Half 2021 Financial Highlights:

• Total net revenues of $32.6 million. Net income of $11.7 million; net income attributable to common shareholders (after a $0.3 million of dividend on Series B Preferred Shares and a $0.3 million of preferred deemed dividend arising out of the redemption of approximately $8.4 million of Series B Preferred Shares in the first half of 2021) of $11.1 million or $1.65 and $1.64 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders¹ for the period was $10.7 million or $1.58 and $1.57 per share basic and diluted, respectively.
• Adjusted EBITDA¹ was $15.9 million.
• An average of 14.00 vessels were owned and operated during the first half of 2021 earning an average time charter equivalent rate of $13,523 per day.

New Charter for M/V Diamantis

The Company announced today a new time charter contract for its container vessel M/V “Diamantis P”, a 2,008 teu vessel built in 1998. The vessel was chartered for a period between a minimum of thirty-six (36) and a maximum of forty (40) months at the option of the charterer, at a gross daily rate of $27,000. The new rate, which is more than four times higher than the vessel’s current charter rate, will commence between October 5, 2021 and October 15, 2021, after the vessel completes its upcoming drydocking.

                                                     

¹ Adjusted EBITDA, Adjusted net income and Adjusted earnings per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for Euroseas financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Other Developments

During the second quarter of 2021, the holders of the Company’s Series B Preferred Shares (“Series B shares”) converted all the remaining Series B shares into shares of common stock as per the terms of the Series B shares. As a result of the conversion, Euroseas issued 453,044 common shares to the holders of the Series B shares for the outstanding amount of $6.365 million. Following the conversion of the Series B shares into common stock, the Company’s Director Mr. Christian Donohue, originally appointed to the Board by Tennenbaum Capital Partners, LLC / Blackrock, Inc. as Series B director and, recently, re-elected as director, resigned from Board in accordance to Blackrock Inc. policy.
In June,2021, the Company signed a term sheet with a bank to draw a loan of $10.0 million with M/V “Aegean Express” and M/V “EM Corfu” as collateral. The loan is expected to be drawn in the fourth quarter of 2021 and it will partly refinance the balloon payment of $12.1 million due in November 2021.

Aristides Pittas, Chairman and CEO of Euroseas commented
: “Containership markets, both charter rates and secondhand prices, have continued unabated their upward path that started in the fall of last year reaching all time highs in all size segments. Selected short term “fill-the-gap” charters have been reported in extremely high levels while long term charters of two to five years are widely offered by charterers for the various types and ages of vessels. There is no doubt that part of the near term increase in demand for vessels is fueled by the inefficiencies brought about by the effects of the COVID pandemic in the transportation system, in addition to rebounding trade growth. However, the strong demand for securing capacity for the medium and longer term can only come from expectations that vessel capacity will be in short supply in view of the expected demand. We believe that the favorable market fundamentals will continue as incremental regulatory requirements coming in 2023 will further restrict the effective supply of vessels and assist in absorbing increased new deliveries starting from the latter part of 2023 onwards as a result of recently placed newbuilding orders.

“Chartering-wise, we have pursued to-date a staggered expiration strategy which has allowed us to follow the upward path of the market having charters coming due for renewal on a rolling basis. Today, we announced the three-year long charter of our vessel, Diamantis P., at a rate of $27,000 per day which will provide us with more than $28.5 million of contracted revenues and $21 million EBITDA during the term of the charter. As the containership markets keep their present levels or continue to rise, we expect our profitability to rise as well, in addition to providing increased visibility of our earnings which now extends into next year and in 2023.

“Our broader strategy is to build Euroseas in a key long term participant in the feeder/intermediate containership segment as evidenced with the placement of our order to build two 2,800 teu vessels to be delivered in the first half of 2023. In that spirit, we continue to evaluate additional uses of any accumulated earnings for the benefit of our shareholders, like, expanding in a risk measured and accretive manner, targeting to use our public listing as a potential platform to consolidate privately owned vessels or fleets or rewarding our shareholders by re-instituting common stock dividends.”

Tasos Aslidis, Chief Financial Officer of Euroseas commented: “The results of the second quarter of 2021 reflect the increased charter rates our vessels earned due to the major recovery of the market compared to the same period of 2020, despite the decrease in the number of vessels we operated during the second quarter of 2021 to 14 vessels, from 19 vessels operated during the same period last year. Our net revenues increased to $18.3 million in the second quarter of 2021 compared to $13.5 million during the same period of last year. On a per-vessel-per-day basis, our vessels earned a 57.0% higher average charter rate in the second quarter of 2021 as compared to the same period of 2020. Our results have also benefitted from other operating income of $1.1 million, net, mainly consisting of the proceeds of a claim award related to the sale of one of our vessels, M/V “Manolis P”, for scrap in March 2020 that initially failed due to COVID-related reasons with the vessel finally being sold to another buyer within the second quarter of 2020.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,860 per vessel per day during the second quarter of 2021 as compared to $6,120 per vessel per day for the same quarter of last year, and $6,887 per vessel per day for the first half of 2021 as compared to $6,003 per vessel per day for the same period of 2020, reflecting a 12.1% and 14.7% increase, respectively, which was attributable to increased supply of stores, increase in hull and machinery insurance premiums and the increased crewing costs for our vessels resulting from difficulties in crew rotation due to COVID-19 related restrictions.

“Adjusted EBITDA during the second quarter of 2021 was $10.3 million versus $4.4 million in the second quarter of last year. As of June 30, 2021, our outstanding debt (excluding the unamortized loan fees) was $62.0 million versus restricted and unrestricted cash of $11.0 million. As of the same date, our scheduled bank debt repayments over the next 12 months amounted to about $20.1 million (excluding the unamortized loan fees), and we are in compliance with all our loan covenants.”

Second Quarter 2021 Results:
For the second quarter of 2021, the Company reported total net revenues of $18.3 million representing a 35.4% increase over total net revenues of $13.5 million during the second quarter of 2020 which was a result of the increased market charter rates our vessels earned in the second quarter of 2021 compared to the same period of 2020. The Company reported a net income for the period of $7.9 million and a net income attributable to common shareholders of $7.6 million, as compared to a net income of $1.3 million and a net income attributable to common shareholders of $1.1 million, respectively, for the same period of 2020. Drydocking expenses amounted to $0.1 million during the second quarter of 2021 related to certain expenses incurred in connection with upcoming drydockings. In the corresponding period of 2020, one vessel passed its intermediate survey in-water and another vessel its special survey in-water for a total cost of $0.4 million. Depreciation expenses for the second quarter of 2021 amounted to $1.6 million compared to $1.7 million for the same period of 2020, due to the decreased number of vessels in the Company’s fleet. Vessel operating expenses were $6.9 million in the second quarter of 2021 as compared to $8.5 million for the second quarter of 2020. The decreased amount is due to the lower number of vessels owned and operated in the second quarter of 2021 compared to the corresponding period of 2020, partly offset by the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, the increased supply of stores and the increase in hull and machinery insurance premiums. General and administrative expenses amounted to $0.7 million for the second quarter of 2021, marginally lower compared to $0.8 million for the second quarter of 2020. On average, 14.0 vessels were owned and operated during the second quarter of 2021 earning an average time charter equivalent rate of $14,853 per day compared to 19.0 vessels in the same period of 2020 earning on average $9,458 per day.

Interest and other financing costs for the second quarter of 2021 amounted to $0.7 million compared to $1.1 million for the same period of 2020. This decrease is due to the decreased amount of debt and the decrease in weighted average LIBOR rate in the current period compared to the same period of 2020.   

Adjusted EBITDA for the second quarter of 2021 was $10.3 million compared to $4.4 million achieved during the second quarter of 2020.

Basic and diluted earnings per share attributable to common shareholders for the second quarter of 2021 was $1.12 and $1.11, calculated on 6,778,829 basic and 6,826,305 diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $0.20 for the second quarter of 2020, calculated on 5,576,960 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized loss on derivative, the adjusted earnings attributable to common shareholders for the quarter ended June 30, 2021 would have been $1.12 per share basic and diluted, compared to adjusted earnings of $0.25 per share basic and diluted for the quarter ended June 30, 2020, after excluding unrealized loss on derivative, amortization of below market time charters acquired and loss on write down of vessel held for sale. Usually, security analysts do not include the above item in their published estimates of earnings per share.

First Half 2021 Results:
For the first half of 2021, the Company reported total net revenues of $32.6 million representing a 12.6% increase over total net revenues of $28.9 million during the first half of 2020, as a result of the higher average charter rates our vessels earned during the period as compared to the same period of last year. The Company reported a net income for the period of $11.7 million and a net income attributable to common shareholders of $11.1 million, as compared to a net income of $3.2 million and a net income attributable to common shareholders of $2.9 million respectively, for the first half of 2020. Depreciation expenses for the first half of 2021 were $3.2 million compared to $3.4 million during the same period of 2020. On average, 14.0 vessels were owned and operated during the first half of 2021 earning an average time charter equivalent rate of $13,523 per day compared to 19.0 vessels in the same period of 2020 earning on average $9,541 per day.

Interest and other financing costs for the first half of 2021 amounted to $1.4 million compared to $2.4 million for the same period of 2020. This decrease is due to the decreased amount of debt and the decrease in weighted average LIBOR rate of our bank loans in the current period compared to the same period of 2020.  

Adjusted EBITDA for the first half of 2021 was $15.9 million compared to $8.4 million achieved during the first half of 2020.

Basic and diluted earnings per share attributable to common shareholders for the first half of 2021 was $1.65 calculated on 6,745,305 basic and $1.64, calculated on 6,789,718 diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $0.52 for the first half of 2020, calculated on 5,576,960 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the first half of the year of the unrealized gain on derivative, the adjusted earnings per share attributable to common shareholders for the six-month period ended June 30, 2021 would have been $1.58 and $1.57, basic and diluted, respectively, compared to adjusted earnings of $0.42 per share basic and diluted for the same period in 2020, after excluding unrealized loss on derivative, amortization of below market time charters acquired and loss on write down of vessel held for sale. As mentioned above, usually, security analysts do not include the above items in their published estimates of earnings per share.

Fleet Profile:

The Euroseas Ltd. fleet profile is as follows:

Name	Type		Dwt	TEU	Year Built	Employment(*)	TCE Rate ($/day)
Container Carriers
AKINADA BRIDGE(*)	Intermediate		71,366	5,610	2001	TC until Oct-21 TC until Oct-22	$17,250 $20,000
SYNERGY BUSAN(*)	Intermediate		50,726	4,253	2009	TC until Aug-21 TC until Aug-24	$12,000 $25,000
SYNERGY ANTWERP(*)	Intermediate		50,726	4,253	2008	TC until Sep-23	$18,000
SYNERGY OAKLAND(+)	Intermediate		50,787	4,253	2009	TC until Oct-21	CONTEX(**) 4250 less 10%
SYNERGY KEELUNG(+)	Intermediate		50,969	4,253	2009	TC until Jun-22 plus 8- 12 months option	$11,750 option $14,500
EM KEA(*)	Feeder		42,165	3,100	2007	TC until May-23	$22,000
EM ASTORIA(+)	Feeder		35,600	2,788	2004	TC until Feb-22	$18,650
EVRIDIKI G(+)	Feeder		34,677	2,556	2001	TC until Jan-22	$15,500
EM CORFU(+)	Feeder		34,654	2,556	2001	TC until Sep-21	$10,200
DIAMANTIS P(+)(*)	Feeder		30,360	2,008	1998	TC until Sep- 21 then from Oct-21 until Oct-24	$6,500 then $27,000
EM SPETSES(*)	Feeder		23,224	1,740	2007	TC until Aug-24	$29,500
EM HYDRA(*)	Feeder		23,351	1,740	2005	TC until Apr-23	$20,000
JOANNA(*)	Feeder		22,301	1,732	1999	TC until Oct-22	$16,800
AEGEAN EXPRESS(*)	Feeder		18,581	1,439	1997	TC until Mar-22	$11,500
Total Container Carriers on the Water	14		539,487	42,281
Vessels under construction		Type	Dwt	TEU	To be delivered
H4201		Feeder	37,237	2,800	Q1 2023
H4202		Feeder	37,237	2,800	Q2 2023

Note:  
(*)    TC denotes time charter. Charter duration indicates the earliest redelivery date; All dates listed are the earliest redelivery dates under each TC unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(**)  The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter period of two years.

Summary Fleet Data:

	Three months, ended June 30, 2020		Three months, ended June 30, 2021		Six months, ended June 30, 2020		Six months, ended June 30, 2021
FLEET DATA
Average number of vessels (1)	19.00		14.00		19.00		14.00
Calendar days for fleet (2)	1,729.0		1,274.0		3,458.0		2,534.0
Scheduled off-hire days incl. laid-up (3)	210.3		0.0		210.3		0.0
Available days for fleet (4) = (2) – (3)	1,518.7		1,274.0		3,247.7		2,534.0
Commercial off-hire days (5)	81.6		0.0		99.8		0.0
Operational off-hire days (6)	3.9		1.1		69.7		42.3
Voyage days for fleet (7) = (4) – (5) – (6)	1,433.2		1,272.9		3,078.2		2,491.7
Fleet utilization (8) = (7) / (4)	94.4	%	99.9	%	94.8	%	98.3	%
Fleet utilization, commercial (9) = ((4) – (5)) / (4)	94.6	%	100.0	%	96.9	%	100.0	%
Fleet utilization, operational (10) = ((4) – (6)) / (4)	99.7	%	99.9	%	97.9	%	98.3	%
AVERAGE DAILY RESULTS
Time charter equivalent rate (11)	9,458		14,853		9,541		13,523
Vessel operating expenses excl. drydocking expenses (12)	5,665		6,279		5,544		6,295
General and administrative expenses (13)	455		581		459		592
Total vessel operating expenses (14)	6,120		6,860		6,003		6,887
Drydocking expenses (15)	210		116		109		91

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up, vessels committed for sale or vessels that suffered unrepaired damages are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up, or of vessels that were committed for sale or suffered unrepaired damages.

(4) Available days. We define available days as the Calendar days in a period net of scheduled off-hire days including laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent rate, or TCE rate, is a measure of the average daily revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:

Tomorrow, August 12, 2021 at 9:00 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results.  

Conference Call details:  

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “Euroseas” to the operator.

To listen to the archived audio file, visit our website http://www.euroseas.gr and click on Company Presentations under our Investor Relations page. The audio replay of the conference call will remain available until Wednesday, August 18, 2021.

Audio webcast – Slides Presentation:

There will be a live and then archived audio webcast of the conference call, via the internet through the Euroseas website (www.euroseas.gr). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. A slide presentation on the Second Quarter 2021 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company’s website (www.euroseas.gr) on the webcast page. Participants to the webcast can download the PDF presentation. 

Euroseas Ltd.

Unaudited Consolidated Condensed Statements of Operations

(All amounts expressed in U.S. Dollars – except number of shares)

	Three Months Ended June 30,		Three Months Ended June 30,			Six Months Ended June 30,		Six Months Ended June 30,
	2020		2021			2020		2021
	(unaudited)					(unaudited)
Revenues
Time charter revenue	14,135,109		19,057,379			30,266,431		33,973,743
Commissions	(626,398	)	(766,732		)	(1,324,913	)	(1,373,981		)
Net revenues	13,508,711			18,290,647		28,941,518		32,599,762
Operating expenses
Voyage expenses	580,496		150,573			895,049		277,982
Vessel operating expenses	8,482,050		6,937,767			16,530,150		13,802,119
Drydocking expenses	362,783		147,175			376,369		229,384
Vessel depreciation	1,659,641		1,596,543			3,386,726		3,193,086
Related party management fees	1,313,546		1,061,816			2,642,368		2,148,221
Other operating income	(2,688,194	)	(1,080,000		)	(2,688,194	)	(1,296,496		)
General and administrative expenses	785,890		739,674			1,588,266		1,500,651
Loss on sale of vessel	–		–			–		9,417
Loss on write down of vessel held for sale	121,165		–			121,165		–
Total operating expenses	10,617,377		9,553,548			22,851,899		19,864,364
Operating income	2,891,334		8,737,099			6,089,619		12,735,398
Other income/(expenses)
Interest and other financing costs	(1,137,609	)	(687,360		)	(2,389,021	)	(1,381,667		)
(Loss) / gain on derivative, net	(468,146	)	(96,765		)	(468,146	)	388,145
Foreign exchange gain / (loss)	555		(7,263		)	2,183		(7,504		)
Interest income	4,185		740			12,780		1,954
Other expenses, net	(1,601,015	)	(790,648		)	(2,842,204	)	(999,072		)
Net income	1,290,319		7,946,451			3,247,415		11,736,326
Dividend Series B Preferred shares	(179,507	)	(117,055		)	(339,069	)	(255,324		)
Preferred deemed dividend	–		(259,067		)	–		(345,423		)
Net income attributable to common shareholders	1,110,812		7,570,329			2,908,346		11,135,579
Weighted average number of shares, basic	5,576,960		6,778,829			5,576,960		6,745,305
Earnings per share, basic	0.20		1.12			0.52		1.65
Weighted average number of shares, diluted	5,576,960		6,826,305			5,576,960		6,789,718
Earnings per share, diluted	0.20		1.11			0.52		1.64

Euroseas Ltd.

Unaudited Consolidated Condensed Balance Sheets

(All amounts expressed in U.S. Dollars – except number of shares)

	December 31, 2020	June 30, 2021
ASSETS
Current Assets:
Cash and cash equivalents	3,559,399	8,267,771
Trade accounts receivable, net	2,013,023	1,536,746
Other receivables	1,866,624	2,525,962
Inventories	1,662,422	1,530,069
Restricted cash	345,010	876,187
Prepaid expenses	244,315	442,307
Total current assets	9,690,793	15,179,042
Fixed assets:
Vessels, net	98,458,447	95,598,016
Long-term assets:
Restricted cash	2,433,768	1,900,000
Derivative	–	230,640
Total assets	110,583,008	112,907,698
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Long-term bank loans, current portion	20,645,320	14,993,800
Related party loan, current	2,500,000	–
Trade accounts payable	2,854,377	2,219,766
Accrued expenses	1,300,420	1,158,617
Accrued preferred dividends	168,676	332,393
Deferred revenue	949,364	883,129
Due to related company	24,072	747,680
Derivative	203,553	322,741
Total current liabilities	28,645,782	20,658,126
Long-term liabilities:
Long-term bank loans, net of current portion	46,220,028	46,699,188
Derivative	362,195	–
Total long-term liabilities	46,582,223	46,699,188
Total liabilities	75,228,005	67,357,314
Mezzanine equity:
Series B Preferred shares (par value $0.01, 20,000,000 shares authorized, 8,365 and nil issued and outstanding, respectively)	8,019,636			–
Shareholders’ equity:
Common stock (par value $0.03, 200,000,000 shares authorized, 6,708,946 and 7,244,891, issued and outstanding)	201,268			217,347
Additional paid-in capital	257,467,980			264,531,339
Accumulated deficit	(230,333,881		)	(219,198,302	)
Total shareholders’ equity	27,335,367			45,550,384
Total liabilities, mezzanine equity and shareholders’ equity	110,583,008			112,907,698

Euroseas Ltd.

Unaudited Consolidated Condensed Statements of Cash Flows

(All amounts expressed in U.S. Dollars)

	Six Months Ended June 30,		Six Months Ended June 30,
	2020		2021
Cash flows from operating activities:
Net income	3,247,415		11,736,326
Adjustments to reconcile net income to net cash provided by operating activities:
Vessel depreciation	3,386,726		3,193,086
Amortization of deferred charges	122,787		98,560
Share-based compensation	60,808		57,850
Unrealized loss / (gain) on derivative	468,146		(473,647	)
Amortization of fair value of below market time charters acquired	(1,160,839	)	–
Loss on write down of vessel held for sale	121,165		–
Loss on sale of vessel	–		9,417
Changes in operating assets and liabilities	(2,273,177	)	(511,343	)
Net cash provided by operating activities	3,973,031		14,110,249
Cash flows from investing activities:
Cash paid for vessels capitalized expenses and sale expenses	(256,482	)	(225,136	)
Advance received for vessel held for sale	540,783		–
Net cash provided by / (used in) investing activities	284,301		(225,136	)
Cash flows from financing activities:
Redemption of Series B preferred shares	–		(2,000,000	)
Proceeds from issuance of common stock, net of commissions paid	–		743,553
Preferred dividends paid	(320,877	)	(91,608	)
Repayment of long-term bank loans and vessel profit participation liability	(5,295,920	)	(5,270,920	)
Repayment of related party loan	(625,000	)	(2,500,000	)
Offering expenses paid	(40,486	)	(60,357	)
Net cash used in financing activities	(6,282,283	)	(9,179,332	)
Net (decrease) / increase in cash, cash equivalents and restricted cash	(2,024,951	)	4,705,781
Cash, cash equivalents and restricted cash at beginning of period	5,930,061		6,338,177
Cash, cash equivalents and restricted cash at end of period	3,905,110		11,043,958

Cash breakdown

Cash and cash equivalents	1,338,375		8,267,771
Restricted cash, current	432,468		876,187
Restricted cash, long term	2,134,267		1,900,000
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	3,905,110		11,043,958

Euroseas Ltd.

Reconciliation of Adjusted EBITDA to Net income

(All amounts expressed in U.S. Dollars)

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2021	Six Months Ended June 30, 2020		Six Months Ended June 30, 2021
Net income	1,290,319		7,946,451	3,247,415		11,736,326
Interest and other financing costs, net (incl. interest income)	1,133,424		686,620	2,376,241		1,379,713
Vessel depreciation	1,659,641		1,596,543	3,386,726		3,193,086
Loss / (gain) on interest rate swap derivative, net	468,146		96,765	468,146		(388,145	)
Amortization of below market time charters acquired	(314,434	)	–	(1,160,839	)	–
Loss on sale of vessel	–		–	–		9,417
Loss on write down of vessel held for sale	121,165		–	121,165		–
Adjusted EBITDA	4,358,261		10,326,379	8,438,854		15,930,397

Adjusted EBITDA Reconciliation:

Euroseas Ltd. considers Adjusted EBITDA to represent net income before interest, income taxes, depreciation, (gain) / loss on interest rate swaps, amortization of below market time charters acquired, loss on sale of vessel and loss on write down of vessel held for sale. Adjusted EBITDA does not represent and should not be considered as an alternative to net income, as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance and liquidity position and because the Company believes that this non- GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods, of financial costs, (gain)/ loss on interest rate swaps, depreciation, amortization of below market time charters acquired, loss on vessel sale and loss on write down of vessel held for sale. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. 

Euroseas Ltd.

Reconciliation of Net income to Adjusted net income

(All amounts expressed in U.S. Dollars – except share data and number of shares)

	Three Months Ended June 30, 2020		Three Months Ended June 30, 2021		Six Months  Ended June 30, 2020		Six Months Ended June 30, 2021
Net income	1,290,319		7,946,451		3,247,415		11,736,326
Unrealized loss / (gain) on derivative	468,146		54,128		468,146		(473,647	)
Amortization of below market time charters acquired	(314,434	)	–		(1,160,839	)	–
Loss on write down of vessel held for sale	121,165		–		121,165		–
Loss on sale of vessel	–		–		–		9,417
Adjusted net income	1,565,196		8,000,579		2,675,887		11,272,096
Preferred dividends	(179,507	)	(117,055	)	(339,069	)	(255,324	)
Preferred deemed dividend	–		(259,067	)	–		(345,423	)
Adjusted net income attributable to common shareholders	1,385,689		7,624,457		2,336,818		10,671,349
Adjusted earnings per share, basic	0.25		1.12		0.42		1.58
Weighted average number of shares, basic	5,576,960		6,778,829		5,576,960		6,745,305
Adjusted earnings per share, diluted	0.25		1.12		0.42		1.57
Weighted average number of shares, diluted	5,576,960		6,826,305		5,576,960		6,789,718

Adjusted net income and Adjusted earnings per share Reconciliation:

Euroseas Ltd. considers Adjusted net income to represent net income before unrealized (gain) / loss on derivative, amortization of below market time charters acquired, loss on write down of vessel held for sale and loss on sale of vessel. Adjusted net income and Adjusted earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivative, loss on write down of vessel held for sale, loss on sale of vessel and amortization of below market time charters acquired, which items may significantly affect results of operations between periods. 

Adjusted net income and Adjusted earnings per share do not represent and should not be considered as an alternative to net income or earnings per share, as determined by GAAP. The Company’s definition of Adjusted net income and Adjusted earnings per share may not be the same as that used by other companies in the shipping or other industries.

About Euroseas Ltd.

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. 

Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. 

The Company has a fleet of 14 vessels, including 9 Feeder containerships and 5 Intermediate Containerships. Euroseas 14 containerships have a cargo capacity of 42,281 teu.

Forward Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. 

Visit our website www.euroseas.gr

Company Contact	Investor Relations / Financial Media
Tasos Aslidis Chief Financial Officer Euroseas Ltd. 11 Canterbury Lane, Watchung, NJ 07069 Tel. (908) 301-9091 E-mail: [email protected]	Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel. (212) 661-7566 E-mail: [email protected]

DURHAM, N.C., Aug. 11, 2021 (GLOBE NEWSWIRE) — Heat Biologics,Inc. (“Heat”)(NASDAQ:HTBX), a clinical-stage biopharmaceutical company focused on developing first-in-class therapies to modulate the immune system, today provided financial, clinical and operational updates for the second quarter ended June 30, 2021.

Jeff Wolf, Chief Executive Officer of Heat, commented, “This quarter we achieved several meaningful clinical, research and business milestones. First, we presented favorable survival data of HS-110 in previously treated non-small cell lung cancer (NSCLC) patients at the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting. Based on these results, we believe HS-110, in combination with a checkpoint inhibitor (CPI), holds significant potential to improve survival benefit for patients with non-small cell lung cancer. We are continuing to evaluate possible Phase 3 registration pathways with the FDA and potential partners. At the same time, we are exploring a variety of paths forward related to our infectious disease efforts. We look forward to providing further near-term updates.”

“This quarter we also announced the groundbreaking for our biomanufacturing/bioanalytic facility in San Antonio, TX and the expansion of our current research and development (R&D) facilities at our corporate headquarters in Morrisville, NC. This expansion will support enhanced R&D capabilities including in-house synthesis and production of antibodies and other drugs/reagents, as well as an expanded vivarium for onsite pre-clinical studies. We believe that this expansion will allow us to accelerate R&D timelines and generate cost savings on research and development by bringing more of our development activities in-house.”

“Moreover, we have maintained a strong balance sheet with approximately $122.5 million of cash, cash equivalents and short-term investments which should allow us to augment our clinical programs as well as enhance and expand our therapeutic pipeline.”

Second Quarter 2021 Financial Results

• Recognized $0.5 million of grant revenue for qualified expenditures under the CPRIT grant compared to $0.6 million for the quarter ended June 30, 2020. The decrease in grant revenue in the current-year period primarily reflects the expected timing of completion of deliveries under the current phase of the contracts. As of June 30, 2021, we had a grant receivable balance of $0.4 million for CPRIT proceeds not yet received but for which the costs had been incurred or the conditions of the award had been met. We continue our efforts to secure future non-dilutive grant funding to subsidize ongoing research and development costs.
• Research and development expense was $4.2 million and $2.8 million for the three months ended June 30, 2021 and 2020, respectively.
• General and administrative expense was $2.9 million and $1.8 million for the three months ended June 30, 2021 and 2020. The increase was primarily due to an increase in stock-based compensation expense.
• Net loss attributable to Heat Biologics was approximately $6.5 million, or ($0.26) per basic and diluted share for the quarter ended June 30, 2021 compared to a net loss of approximately of $4.5 million, or ($0.35) per basic and diluted share for the quarter ended June 30, 2020.
• As of June 30, 2021, the Company had approximately $122.5 million in cash, cash equivalents and short investments.

About Heat Biologics, Inc.

Heat Biologics is a biopharmaceutical company focused on developing first-in-class therapies to modulate the immune system. Heat’s gp96 platform is designed to activate immune responses against cancer or infectious diseases. The Company has multiple product candidates in development leveraging the gp96 platform, including HS-110, which has completed enrollment in its Phase 2 trial, various infectious disease programs in preclinical development and a pipeline of proprietary immunomodulatory antibodies and cell-based therapies, including PTX-35 and HS-130 in Phase 1 clinical trials.

For more information, please visit: www.heatbio.com, and also follow us on Twitter.

Forward Looking Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 on our current expectations and projections about future events. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These statements are based upon current beliefs, expectation, and assumptions and include statements regarding the
potential of HS-110, in combination with a checkpoint inhibitor (CPI), to improve survival benefit for patients with non-small cell lung cancer, providing further near-term HS-110 updates, the expansion of Heat’s current research and development (R&D) facilities at its corporate headquarters in Morrisville, North Carolina allowing Heat to accelerate R&D timelines and generate cost savings on research and development by bringing more of our development activities in-house and Heat’s balance sheet allowing it to augment its clinical programs as well as enhance and expand its therapeutic pipeline. These statements are subject to a number of risks and uncertainties, many of which are difficult to predict, including the ability of HS-110, in combination with a checkpoint inhibitor (CPI), holds significant potential to improve survival benefit for patients with non-small cell lung cancer, the ability of Heat’s vaccine platform to provide prevention and treatment of cancer and infectious diseases, such as COVID-19, Heat’s ability to provide further near-term updates, Heat’s ability to accelerate R&D timelines and generate cost savings on research and development by bringing more of its development activities in-house, Heat’s ability to augment its clinical programs and enhance and expand its therapeutic pipeline, the ability of Heat’s therapies to perform as designed, to demonstrate safety and efficacy, as well as results that are consistent with prior results, the ability to enroll patients and complete the clinical trials on time and achieve desired results and benefits, especially in light of COVID-19, Heat’s ability to obtain regulatory approvals for commercialization of product candidates or to comply with ongoing regulatory requirements, regulatory limitations relating to Heat’s ability to promote or commercialize its product candidates for specific indications, acceptance of its product candidates in the marketplace and the successful development, marketing or sale of products, Heat’s ability to maintain its license agreements, the continued maintenance and growth of its patent estate, its ability to establish and maintain collaborations, its ability to obtain or maintain the capital or grants necessary to fund its research and development activities and its cash and short-term investments providing significant runway to fund Heat’s current clinical programs and further expand Heat’s therapeutic portfolio , its ability to continue to maintain its listing on the Nasdaq Capital Market and its ability to retain its key scientists or management personnel, and the other factors described in Heat’s annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC, and other subsequent filings with the SEC. The information in this release is provided only as of the date of this release, and Heat undertakes no obligation to update any forward-looking statements contained in this release based on new information, future events, or otherwise, except as required by law.

Media and Investor Relations Contact

David Waldman
+1 919 289 4017
[email protected]

(tables follow)

HEAT BIOLOGICS, INC.

Consolidated Balance Sheets

		June 31,				December 31,
		2021				2020
			(unaudited)
Current Assets
Cash and cash equivalents		$	21,567,287			$	10,931,890
Short-term investments			100,964,986				100,842,438
Accounts receivable			102,593				177,239
Prepaid expenses and other current assets			2,124,419				1,842,620
Total Current Assets			124,759,285				113,794,187
Property and Equipment, net			4,146,111				676,262
Other Assets
In-process R&D			5,866,000				5,866,000
Goodwill			1,452,338				1,452,338
Grant receivable			368,465				—
Operating lease right-of-use asset			1,857,309				2,035,882
Finance lease right-of-use asset			187,744				247,194
Deposits			152,267				122,779
Total Other Assets			9,884,123				9,724,193
Total Assets		$	138,789,519			$	124,194,642
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable		$	1,180,965			$	1,051,764
Deferred revenue, current portion			—				603,717
Operating lease liability, current portion			293,226				278,753
Finance lease liability, current portion			111,411				108,127
Accrued expenses and other liabilities			1,766,311				1,614,534
Total Current Liabilities			3,351,913				3,656,895
Long Term Liabilities
Other long-term liabilities			48,949				36,243
Derivative warrant liability			37,802				33,779
Deferred tax liability			361,911				361,911
Deferred revenue, net of current portion			237,500				237,500
Operating lease liability, net of current portion			1,151,886				1,301,636
Financing lease liability, net of current portion			103,700				160,240
Contingent consideration, net of current portion			2,336,626				2,250,844
Contingent consideration, related party – net of current portion			686,889				661,671
Total Liabilities			8,317,176				8,700,719
Stockholders’ Equity
Common stock, $.0002 par value; 250,000,000 and 250,000,000 shares authorized, 25,137,502 and 22,592,500 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively			5,027				4,519
Additional paid-in capital			276,225,048				247,048,349
Accumulated deficit			(144,722,860	)			(130,647,485	)
Accumulated other comprehensive loss			(121,127	)			(166,056	)
Total Stockholders’ Equity – Heat Biologics, Inc.			131,386,088				116,239,327
Non-Controlling Interest			(913,745	)			(745,404	)
Total Stockholders’ Equity			130,472,343				115,493,923
Total Liabilities and Stockholders’ Equity		$	138,789,519			$	124,194,642

HEAT BIOLOGICS INC.

Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2019
Revenue:
Grant and licensing revenue		$	459,494			$	593,165			$	998,139			$	1,495,045
Operating expenses:
Research and development			4,216,294				2,790,797				7,622,542				5,573,303
General and administrative			2,853,265				1,801,674				7,620,910				5,072,222
Change in fair value of contingent consideration			105,000				843,000				111,000				816,000
Total operating expenses			7,174,559				5,435,471				15,354,452				11,461,525
Loss from operations			(6,715,065	)			(4,842,306	)			(14,356,313	)			(9,966,480	)
Change in fair value of warrant liability			4,679				(24,363	)			(4,023	)			(1,002,073	)
Investor relations expense			—				—				—				(66,767	)
Interest income			176,798				56,080				371,963				108,790
Other income (expense), net			(86,988	)			273,771				(255,343	)			16,292
Total non-operating income (loss)			94,489				305,488				112,597				(943,758	)
Net loss before income taxes			(6,620,576	)			(4,536,818	)			(14,243,716	)			(10,910,238	)
Income tax expense			—				—				—				—
Net loss			(6,620,576	)			(4,536,818	)			(14,243,716	)			(10,910,238	)
Net loss – non-controlling interest			(77,379	)			(82,388	)			(168,341	)			(163,702	)
Net loss attributable to Heat Biologics, Inc.		$	(6,543,197	)		$	(4,454,430	)		$	(14,075,375	)		$	(10,746,536	)
Net loss per share attributable to Heat Biologics, Inc.-
Net loss per share attributable to Heat Biologics, Inc.-basic and diluted		$	(0.26	)		$	(0.35	)		$	(0.57	)		$	(1.04	)
Weighted-average number of common shares used in net loss per share attributable to common stockholders-
Weighted-average number of common shares used in net loss per share attributable to Heat Biologics, Inc.—basic and diluted			25,137,466				12,561,549				24,671,281				10,372,352
Comprehensive loss:
Net loss		$	(6,620,576	)		$	(4,536,818	)		$	(14,243,716	)		$	(10,910,238	)
Unrealized (loss) gain on foreign currency translation			26,661				(179,510	)			44,929				39,294
Total comprehensive loss			(6,593,915	)			(4,716,328	)			(14,198,787	)			(10,870,944	)
Comprehensive loss attributable to non-controlling interest			(77,379	)			(82,388	)			(168,341	)			(163,702	)
Comprehensive loss – Heat Biologics, Inc.		$	(6,516,536	)		$	(4,633,940	)		$	(14,030,446	)		$	(10,707,242	)

Completed initial public offering (“IPO”) raising net proceeds of $31.6 million

Appointed Anne Morrissey to the Board of Directors, an industry expert with decades of medical device experience

Initiated 792-patient, pivotal LOCAL trial after receipt of investigational device exemption (IDE) submission approval for FemaSeed

^™

ATLANTA, Aug. 11, 2021 (GLOBE NEWSWIRE) — Femasys Inc. (NASDAQ: FEMY), a biomedical company developing a suite of product candidates to transform women’s healthcare with minimally invasive, non-surgical, in-office technologies, today announced financial results for the second quarter and six months ended June 30, 2021.

“This is an exciting time of growth for Femasys after becoming a publicly traded company on June 18^th,” stated Kathy Lee-Sepsick, president, chief executive officer and founder of Femasys. “We are galvanizing on all fronts to advance FemaSeed^™, our localized directional insemination product candidate that is part of our fertility portfolio, through clinical development and are thrilled to have treated the first patient in our prospective, multi-center pivotal LOCAL trial in July.”

Ms. Lee-Sepsick, further commented, “We are continuing our clinical work with FemBloc^®, our permanent birth control product candidate, in preparation for an IDE submission for a pivotal trial planned for next year. Both reproductive products may provide women access to superior technologies and increase their options related to reproductive care. We remain enthusiastic and poised to address the vast underserved markets within women’s health worldwide with our next-generation medical solutions.”

Recent Corporate Developments

• On June 17, 2021, Femasys announced the pricing of its initial public offering of 2,650,000 shares of its common stock at a public price of $13.00 per share. The net proceeds to Femasys from the offering, after deducting the underwriting discounts and commissions and legal expenses, totaled $31,613,500. Shares began trading on the Nasdaq Capital Market on June 18, 2021, under the ticker symbol “FEMY”. The offering closed on June 22, 2021.

• On June 24, 2021, Femasys announced the appointment of Anne Morrissey to the company’s board of directors. Ms. Morrissey brings decades of experience to Femasys. Most recently, Anne served as President and Chief Executive Officer of Alydia Health from 2016 to 2020, and thereafter as an advisor until it was acquired by Merck in March 2021. She holds several patents on medical devices and advises medical device companies, including Raydiant Oximetry.

Recent Developments Related to Clinical Programs

• On April 8, 2021, Femasys received IDE approval to begin a multi-center, pivotal clinical trial (the “LOCAL trial”) of FEMASEED, a first-in-class, localized directional insemination product candidate for infertility.

• On July 20, 2021, Femasys announced the initiation and first patient treated in the LOCAL trial. The trial is being conducted across approximately 20 centers in the United States and is expected to enroll up to 792 patients diagnosed as infertile. The primary endpoints of the study are to determine the effectiveness (clinical pregnancy rate) and safety over a period of 7 weeks. Enrollment in this trial is ongoing.

Second Quarter (Three-Months) 2021 Financial Results:

• Research and Development expenses increased 0.7%, to $894,868 for the second quarter of 2021 compared the second quarter of 2020. The increase was primarily due to compensation and personnel related costs, an increase in clinical-related costs related to FemBloc studies, but was offset by decreases in material and development costs and other costs.

• General and Administrative expenses increased by $507,774, or 93.4% to $1,051,399 for the second quarter of 2021 compared to the second quarter of 2020. The increase was primarily due to an increase of $412,076 in professional costs associated with the company’s financing transactions and other administrative costs, such as insurance.

• Sales of the Company’s FemVue product, increased by $142,772, or 77.9%, to $326,006 from $183,234 for the second quarter of 2021. The net sales increase accounted for a decrease in sales for the three-months ending June 30, 2020 due to impacts of the COVID-19 pandemic. U.S. sales comprised a 46.3% increase for the second quarter of 2021 compared to the same period last year.

• Primarily reflecting the factors noted above, net loss was $1,083,059, or $0.52 per diluted share, for the second quarter of 2021, compared to $1,485,451, or $1.55 per diluted for the second quarter of 2020. 

• The cash and cash equivalents balance as of June 30, 2021 was $29,858,868. The Company expects, based on its current operating plan, that its existing cash and cash equivalents, together with the net proceeds from the IPO, will be sufficient to fund its operations at least through 2022.

Year to Date 2021 (Six-Months) Financial Results:

• Research and Development expenses decreased by $349,512, or 15.6% to $1,889,890 for the six months ended June 30, 2021 compared to the six months ended June 30, 2020. The decrease was primarily due to the decrease of $170,249 in compensation and related personnel costs due to the reduction in staff in March 2020, along with a decrease in clinical-related costs related to FemBloc studies and decreases in material and development costs.

• General and Administrative expenses increased by $749,569, or 62.8%, to $1,943,386 for the six months ended June 30, 2021 compared to the six months ended June 30, 2020. The increase was largely due to an increase of $740,734 in professional costs associated with the Company’s financing transactions.

• Sales of the Company’s FemVue product increased by $212,035, or 47.8%, to $655,781 from $443,746 for the six-months ended June 30, 2020. The increase was attributed to a $156,240 increase in U.S. sales and a $55,795 increase in international sales, primarily due to the impacts of the COVID-19 pandemic.

• Primarily reflecting the factors noted above, net loss decreased to $2,913,291, or $1.89 per diluted share, for the six months ended June 30 2021, as compared to a net loss of $3,687,178, or $3.86 per diluted share, for the six months ended June 30, 2020. 

About Femasys

Femasys is a biomedical company developing a suite of product candidates to transform women’s healthcare with minimally invasive, non-surgical, in-office technologies. Its two lead reproductive health product candidates include FemBloc^® permanent birth control and FemaSeed^™ localized directional insemination for infertility. The Company’s product for fallopian tube assessment by ultrasound FemVue^®, is currently marketed in the United States.

Femasys is also advancing FemCerv^®, a technology platform for tissue sampling intended to be marketed alongside our other women-specific medical products in the physician’s office setting.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. Forward-looking statements can be identified by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “believe,” “potential” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on our current expectations and are subject to inherent uncertainties, risks and assumptions, many of which are beyond our control, difficult to predict and could cause actual results to differ materially from what we expect. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ include, among others: our ability to develop and advance our current product candidates and programs into, and successfully initiate and complete, clinical trials; the ability of our clinical trials to demonstrate safety and effectiveness of our product candidates and other positive results; estimates regarding the total addressable market for our product candidates; our business model and strategic plans for our products, technologies and business, including our implementation thereof; and those other risks and uncertainties described in the section titled “Risk Factors” in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) on August 11, 2021, and other reports as filed with the SEC. Forward-looking statements contained in this press release are made as of this date, and Femasys undertakes no duty to update such information except as required under applicable law.

Contacts:

Investors

Chuck Padala
LifeSci Advisors, LLC
+1-917-741-7792
[email protected]

Media

Sky Striar
LifeSci Communications
[email protected]

Femasys Inc.

Investor Contact:
[email protected]

Media Contact:
[email protected]

 

FEMASYS INC.
Balance Sheets
(unaudited)
Assets								June 30, 2021			December 31, 2020
Current assets:
	Cash and cash equivalents						$	29,858,868			3,322,226
	Accounts receivable, net							158,837			125,790
	Inventory, net							146,879			131,378
	Other current assets							868,842			284,115
					Total current assets			31,033,426			3,863,509
Property and equipment, at cost:
	Leasehold improvements							1,155,332			1,155,332
	Office equipment							64,145			64,145
	Furniture and fixtures							424,947			424,947
	Machinery and equipment							2,242,088			2,242,088
	Construction in progress							151,662			139,150
								4,038,174			4,025,662
Less accumulated depreciation								(2,470,397	)		(2,197,868	)
					Net property and equipment			1,567,777			1,827,794
Long-term assets:
	Lease right-of-use assets, net							854,817			1,057,506
	Intangible assets, net of accumulated amortization							42,185			65,069
	Other long-term assets							488,961			792,440
					Total long-term assets			1,385,963			1,915,015
					Total assets		$	33,987,166			7,606,318
(continued)

 

FEMASYS INC.
Balance Sheets
(unaudited)
Liabilities, Redeemable Preferred Stock and Stockholders’ Equity (Deficit)								June 30, 2021			December 31, 2020
Current liabilities:
	Accounts payable						$	947,078			674,333
	Accrued expenses							430,183			1,117,601
	Clinical holdback – current portion							18,947			—
	Notes payable – current portion							470,556			630,010
	Lease liabilities – current portion							419,333			434,072
	Other – current							32,895			32,895
					Total current liabilities			2,318,992			2,888,911
Long-term liabilities:
	Clinical holdback – long-term portion							151,958			164,972
	Note payable – long-term portion							—			182,490
	Lease liabilities – long-term portion							603,616			809,092
	Other – long-term							32,895			32,895
					Total long-term liabilities			788,469			1,189,449
					Total liabilities			3,107,461			4,078,360
Commitments and contingencies (Note 4)
Redeemable convertible preferred stock:
	Preferred stock, Series B, $.001 par, none authorized, issued
		and outstanding as of June 30, 2021; 13,344,349 shares
		authorized, issued and outstanding as of December 31, 2020						—			10,748,873
	Preferred stock, Series C, $.001 par, none authorized, issued
		and outstanding as of June 30, 2021; 42,491,484 shares
		authorized, issued and outstanding as of December 31, 2020						—			44,594,813
Stockholders’ equity (deficit):
	Common stock, $.001 par, 200,000,000 authorized,
		11,916,943 shares issued and 11,799,720 outstanding as of
		June 30, 2021; and 95,583,558 authorized, 1,110,347 shares
		issued and 993,124 outstanding as of December 31, 2020						11,916			1,110
	Treasury stock, 117,223 shares							(60,000	)		(60,000	)
	Preferred stock, Series A, $.001 par, none authorized, issued
		and outstanding as of June 30, 2021; 17,310,609 shares
		authorized, and 17,210,609 shares issued and outstanding
		as of December 31, 2020						—			17,211
	Warrants							702,492			702,492
	Additional paid-in-capital							108,341,078			22,725,949
	Accumulated deficit							(78,115,781	)		(75,202,490	)
					Total stockholders’ equity (deficit)			30,879,705			(51,815,728	)
					Total liabilities, redeemable convertible preferred stock
						and stockholders’ equity (deficit)	$	33,987,166			7,606,318

 

FEMASYS INC.
Statements of Comprehensive Loss
(unaudited)
								Three Months Ended June 30,						Six Months Ended June 30,
								2021			2020			2021			2020
Sales							$	326,006			183,234			655,781			443,746
Cost of sales								107,627			55,275			200,669			128,463
					Gross margin			218,379			127,959			455,112			315,283
Operating expenses:
	Research and development							894,868			888,701			1,889,890			2,239,402
	Sales and marketing							21,828			13,384			44,647			250,573
	General and administrative							1,051,399			543,625			1,943,386			1,193,817
	Depreciation and amortization							151,359			165,882			304,812			335,292
					Total operating expenses			2,119,454			1,611,592			4,182,735			4,019,084
					Loss from operations			(1,901,075	)		(1,483,633	)		(3,727,623	)		(3,703,801	)
Other income (expense):
	Interest income, net							144			1,620			308			21,956
	Other income							821,515			—			821,515			—
	Interest expense							(3,643	)		(3,438	)		(7,491	)		(5,333	)
					Total other income (expense)			818,016			(1,818	)		814,332			16,623
					Loss before income taxes			(1,083,059	)		(1,485,451	)		(2,913,291	)		(3,687,178	)
Income tax expense								—			—			—			—
					Net loss		$	(1,083,059	)		(1,485,451	)		(2,913,291	)		(3,687,178	)
Comprehensive loss:
					Net loss		$	(1,083,059	)		(1,485,451	)		(2,913,291	)		(3,687,178	)
					Change in fair value of available for sale investments			—			—			—			(20	)
					Total comprehensive loss		$	(1,083,059	)		(1,485,451	)		(2,913,291	)		(3,687,198	)
Net loss attributable to common stockholders, basic and diluted							$	(1,083,059	)		(1,485,451	)		(2,913,291	)		(3,687,178	)
Net loss per share attributable to common stockholders, basic and diluted							$	(0.52	)		(1.55	)		(1.89	)		(3.86	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted								2,076,516			955,279			1,538,780			955,279

AUSTIN, Texas, Aug. 11, 2021 (GLOBE NEWSWIRE) — Resonant Inc. (NASDAQ: RESN), a provider of radio frequency (RF) filter solutions developed on a robust intellectual property platform, designed to connect People and Things, today provided financial results for the second quarter ended June 30, 2021.

Management Commentary

“The second quarter of 2021 was marked by accelerating customer shipments of a record 17.5 million RF filters, continued advancements in our XBAR^® RF filter technology to unlock next-generation networks and financial results in-line with previously issued guidance,” said George B. Holmes, Chairman and CEO of Resonant. “We continue to receive validation from industry leaders that our XBAR^® technology is the best solution to meet the demands of 5G, 6G, Wi-Fi 6 & 7, UWB and potentially mmWave.

“During the quarter we announced our upgraded, cloud-based WaveX™ platform with full 3D finite element modeling to enable XBAR^® design workflow. These enhancements enable simulation of resonators and filters not possible with today’s commercially available tools, while also offering a significantly reduced time to market for our customers and enabling RF filters to be developed at a much lower cost when compared to traditional approaches.

“Through our continued work with the world’s largest RF filter manufacturer, we are executing upon our agreement to build a high-volume manufacturing platform for XBAR^® filters to meet the stringent demands of the largest mobile handset OEMs in the world. In fact, we are now expecting to expand our relationship with this strategic partner by additional design contracts, while also securing an XBAR^® contract in the back half of 2021 focused on non-mobile applications, such as autonomous and electric vehicles, IoT or infrastructure applications,” concluded Holmes.

Second Quarter 2021 Company Highlights

• Resonant customers shipped a record 17.5 million RF filters designed using the Company’s WaveX™ technology in the second quarter of 2021, representing an approximate 450% increase from the same year-ago period and a sequential increase of approximately 104%. To-date, Resonant’s customers have shipped over 79 million RF filter units that use the Company’s designs.
• The Company’s robust patent portfolio grew to over 375 patents filed or issued as of June 30, 2021, greater than 225 of which are related to Resonant’s proprietary XBAR^® and high frequency technologies.
• Announced WaveX™, the Company’s upgraded 3D finite element modeling (FEM) software platform used for designing RF filters, specifically enhanced for 5G, Wi-Fi, and ultra-wideband RF filters. The enhanced cloud-based platform improves design workflow, while also enabling the simulation of resonators and filters not possible with today’s commercially available tools.
• Extended a licensing agreement with an existing Tier-1 Chinese foundry partner, demonstrating mutual commitment to servicing the rapidly growing China mobile handset market. The refined partnership provides prepaid royalties for multiple RF filter designs.
• Published a white paper, titled, “How Wi-Fi Continues to Evolve to be The Solution to Wireless Data Demand,” that explores the evolution of Wi-Fi to meet growing wireless data demand and the challenges of signal interference, Wi-Fi’s coexistence with 5G and the technologies available to alleviate these challenges.

Second Quarter 2021 Financial Summary

• Revenues in the second quarter of 2021 were $0.6 million, compared to $0.6 million in the second quarter of 2020 and the first quarter of 2021.
• Deferred revenues totaled $0.8 million at the end of the second quarter of 2021.
• Research and development expenses were $5.9 million in the second quarter of 2021, compared to $4.8 million in the same year-ago quarter and $5.4 million in the first quarter of 2021.
• Sales, marketing and administrative expenses were approximately $3.8 million in the second quarter of 2021, compared to $3.0 million in the same year-ago quarter and $4.1 million in the first quarter of 2021.
• Net loss was $9.1 million, or $(0.15) per share, in the second quarter of 2021, compared to a net loss of $7.2 million, or $(0.14) per share, in the same quarter a year-ago.
• Non-GAAP, adjusted EBITDA was $(6.7) million, or $(0.11) per share in the second quarter of 2021, compared to $(5.4) million or $(0.10) per share in the same quarter a year-ago.
• Resonant had cash and cash equivalents of approximately $22.7 million as of June 30, 2021.

Conference Call and Webcast

Date: Wednesday, August 11, 2021
Time: 3:30 p.m. Central standard time (4:30 p.m. Eastern standard time)
U.S. Dial-In: 1-855-327-6837
International Dial-In: 1-631-891-4304
Conference ID: 10015955
Webcast: RESN Q2 2021 Webcast

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A playback of the call will be available through September 11, 2021. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 10015955. A webcast will also be available for 30 days on the IR section of the Resonant website or by clicking here: RESN Q2 2021 Webcast.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.

About Resonant Inc.
Resonant (NASDAQ: RESN) is transforming the market for RF front-ends (RFFE) by disrupting the RFFE supply chain through the delivery of solutions that leverage our WaveX™ design software tools platform, capitalize on the breadth of our IP portfolio, and are delivered through our services offerings. In a market that is critically constrained by limited designers, tools and capacity, Resonant addresses these critical problems by providing customers with ever increasing design efficiency, reduced time to market and lower unit costs. Customers leverage Resonant’s disruptive capabilities to design cutting edge filters and modules, while capitalizing on the added stability of a diverse supply chain through Resonant’s fabless ecosystem-the first of its kind. Working with Resonant, customers enhance the connectivity of current mobile devices, while preparing for the demands of emerging 5G applications.

To learn more about Resonant, view the series of videos published on its website that explain Resonant’s technologies and market positioning:

• 
  Resonant Corporate Video
  
• WaveX™ Design Technology and XBAR®: Speeding the Transition to 5G
• 
  Expert Insights on Unlocking the Potential of 5G
  
• 
  The Technology Enabling the Transition to 5G
  

For more information, please visit www.resonant.com.

Resonant uses its website (https://www.resonant.com) and LinkedIn page (https://www.linkedin.com/company/resonant-inc-/) as channels of distribution of information about its products, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and Resonant may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company’s website and its social media accounts in addition to following the company’s press releases, SEC filings, public conference calls, and webcasts.

About Resonant’s WaveX™ Design Technology

Resonant creates designs for difficult RF frequency bands and modules that meet challenging and complex 5G, Wi-Fi and UWB RF front-end requirements. Using WaveX™, Resonant’s designs have the potential to be developed in half the time and manufactured at a lower cost than traditional approaches. WaveX™ is a suite of proprietary algorithms, software design tools and network synthesis techniques that enables Resonant to explore a much larger set of possible design solutions.

Resonant delivers rapid design simulations to its customers, which they manufacture in their captive fabs or have manufactured by one of Resonant’s foundry partners. These improved solutions still use Surface Acoustic Wave (SAW) or Temperature Compensated Surface Acoustic Wave (TC-SAW) technologies with the performance of higher cost manufacturing methods like Bulk Acoustic Wave (BAW).

Resonant’s WaveX™ delivers excellent predictability, enabling achievement of the desired product performance in roughly half as many turns through the fab. In addition, Resonant’s simulations model fundamental material and structure properties, which makes integration with foundry and fab customers much more intuitive, because they speak the “fab language” of basic material properties and dimensions.

Safe Harbor / Forward-Looking Statements

This press release contains forward-looking statements, which include the following subjects, among others: the status of filter designs under development, the capabilities of our filter designs and software tools, and our expectation that we will add design contracts with our existing strategic partner as well as new customers of our XBAR^® filters for non-mobile applications,. Forward-looking statements are made as of the date of this document and are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: our limited operating history; our ability to complete designs that meet customer specifications; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; our customers’ ability to sell products incorporating our designs to their OEM customers; changes in our expenditures and other uses of cash; the ability of our designs to significantly lower costs compared to other designs and solutions; the risk that the intense competition and rapid technological change in our industry renders our designs less useful or obsolete; our ability to find, recruit and retain the highly skilled personnel required for our design process in sufficient numbers to support our growth; our ability to manage growth; and general market, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.

Investor Relations Contact:

Greg Falesnik or Brooks Hamilton
MZ Group – MZ North America         
(949) 546-6326        
[email protected]

Resonant Inc.

Condensed Consolidated Balance Sheets


(in thousands)

	June 30, 2021				December 31, 2020
	(Unaudited)				(Audited)
ASSETS
Cash and cash equivalents	$	22,732			$	24,968
Other current assets	716				719
TOTAL CURRENT ASSETS	23,448				25,687
PROPERTY AND EQUIPMENT, NET	1,341				1,583
NONCURRENT ASSETS	5,496				5,460
TOTAL ASSETS	$	30,285			$	32,730
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	4,137			$	3,401
Other current liabilities	1,375				2,450
TOTAL CURRENT LIABILITIES	5,512				5,851
TOTAL LONG-TERM LIABILITIES	1,540				1,826
STOCKHOLDERS’ EQUITY
Common stock	63				59
Additional paid-in capital	191,924				175,813
Accumulated other comprehensive loss	44				87
Accumulated deficit	(168,798		)		(150,906		)
TOTAL STOCKHOLDERS’ EQUITY	23,233				25,053
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	30,285			$	32,730

Resonant Inc.

Consolidated Statements of Operations

(Unaudited)


(in thousands, except share data)

	Three Months Ended												Six Months Ended
	June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
REVENUES	$	614			$	608			$	604			$	1,222			$	1,148
OPERATING EXPENSES
Research and development	5,885				5,351				4,845				11,236				10,307
Sales, marketing and administration	3,795				4,077				2,976				7,872				6,115
TOTAL OPERATING EXPENSES	9,680				9,428				7,821				19,108				16,422
NET OPERATING LOSS	(9,066		)		(8,820		)		(7,217		)		(17,886		)		(15,274		)
OTHER INCOME, NET
Interest and investment income (expense)	(3		)		(3		)		7				(6		)		64
Other expense	—				—				(5		)		—				(9		)
TOTAL OTHER INCOME, NET	(3		)		(3		)		2				(6		)		55
LOSS BEFORE INCOME TAXES	(9,069		)		(8,823		)		(7,215		)		(17,892		)		(15,219		)
Provision for income taxes	—				—				—				—				1
NET LOSS	$	(9,069	)		$	(8,823	)		$	(7,215	)		$	(17,892	)		$	(15,220	)
NET LOSS PER SHARE – BASIC AND DILUTED	$	(0.15	)		$	(0.15	)		$	(0.14	)		$	(0.30	)		$	(0.31	)
Weighted average shares outstanding — basic and diluted	60,820,319				59,775,674				52,901,488				60,300,883				48,367,308

Resonant Inc.

Reconciliation of non-GAAP Information

(Unaudited)


(in thousands, except share data)

	Three Months Ended												Six Months Ended
	June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net loss (GAAP)	$	(9,069	)		$	(8,823	)		$	(7,215	)		$	(17,892	)		$	(15,220	)
Add (subtract) the following items:
Interest, net	3				3				(7		)		6				(64		)
R&D stock compensation	1,085				972				870				2,057				1,518
SM&A stock compensation	1,072				1,175				741				2,247				1,472
R&D depreciation and amortization	184				185				202				369				410
SM&A depreciation and amortization	50				50				48				100				98
Provision for income taxes	—				—				—				—				1
Adjusted EBITDA (non-GAAP)	$	(6,675	)		$	(6,438	)		$	(5,361	)		$	(13,113	)		$	(11,785	)
Adjusted EBITDA (non-GAAP) per share – basic and diluted	$	(0.11	)		$	(0.11	)		$	(0.10	)		$	(0.22	)		$	(0.24	)
Weighted average shares outstanding — basic and diluted	60,820,319				59,775,674				52,901,488				60,300,883				48,367,308
R&D: research and development
SM&A: sales, marketing and administration

 

WEST LAFAYETTE, Ind., Aug. 11, 2021 (GLOBE NEWSWIRE) — Inotiv, Inc. (NASDAQ: NOTV) (the “Company”, “We”, “Our” or “Inotiv”), a leading contract research organization specializing in nonclinical and analytical drug discovery and development services, today announced financial results for the three months (“Q3 FY 2021”) and nine months (“9M FY 2021”) ended June 30, 2021.

Q3 FY 2021 Highlights

• Revenue grew 45.2% to $22.9 million, from $15.8 million during the three months ended June 30, 2020 (“Q3 FY 2020”), driven by internal growth of $2.9 million and two months of incremental revenue from HistoTox Labs, Inc. (“HistoTox Labs”) and Bolder BioPATH, Inc. (“Bolder BioPATH”) totaling $4.3 million.
• Gross profit increased 51.0% to $7.6 million, from $5.1 million in Q3 FY 2020, reflecting higher revenue and a 128 basis point expansion in gross margin to 33.4%.
• Operating loss totaled $(1.7) million, compared to an operating loss of $(477,000) in Q3 FY 2020, reflecting an increase in operating expenses, which more than offset higher gross profit on higher revenue. The increase in operating expenses reflects higher strategic investment in unallocated corporate general and administrative expense (“G&A”) to support additional future revenue growth, which included recruiting and relocation expense, higher compensation expense (including non-cash stock compensation), transaction costs related to the acquisitions of HistoTox Labs and Bolder BioPATH, an increase in sales commissions due to higher sales awards and an increase in startup costs for internal investments in new service offerings.
• Net loss was $(2.3) million, or $(0.15) per diluted share, compared to a net loss of $(879,000), or $(0.08) per diluted share, in Q3 FY 2020.
• Adjusted EBITDA increased 147.7% to $2.2 million, from $894,000 in Q3 FY 2021.
• Book-to-bill ratio of 1.53x for services business.
• Ending backlog of $62.0 million, up 15.0% compared to $53.9 million at March 31, 2021, and up 68.0% from $36.9 million at June 30, 2020.

9M FY 2021 Highlights

• Revenue grew 33.2% to $59.5 million, from $44.7 million during the nine months ended June 30, 2020 (“9M FY 2020”), driven by internal growth of $10.5 million and two months of incremental revenue from HistoTox Labs and Bolder BioPATH totaling $4.3 million.
• Gross profit increased 43.3% to $19.8 million, from $13.8 million in 9M FY 2020, reflecting higher revenue and a 236 basis point expansion in gross margin to 33.3%.
• Operating loss totaled $(2.2) million, compared to an operating loss of $(1.7) million in 9M FY 2020, reflecting an increase in operating expenses, which more than offset higher gross profit on higher revenue.
• Net loss was $(3.4) million, or $(0.27) per diluted share, compared to a net loss of $(2.9) million, or $(0.27) per diluted share, in 9M FY 2020.
• Adjusted EBITDA increased 92.2% to $5.0 million, from $2.6 million in 9M FY 2020.
• Book-to-bill ratio of 1.40x for services business.

Significant Events during Q3 FY 2021

• On April 23, 2021, closed an underwritten public offering of 3,044,117 common shares. All of the shares were sold at a price to the public of $17.00 per share. Net proceeds to the Company from the offering were approximately $49.0 million, after deducting the underwriting discount and estimated offering expenses.
• On April 30, 2021, announced $28.0 million in additional debt financing from First Internet Bank of Indiana and completed the acquisition of substantially all of the assets of HistoTox Labs.
• On May 3, 2021, consummated the acquisition by merger of Bolder BioPATH.
• On May 27, 2021, announced the purchase of St. Louis facility and plans to expand its capacity.
• On June 7, 2021, announced that the company joined the broad-market Russell 3000® Index and Russell 2000® Index at the conclusion of the 2021 Russell indexes annual reconstitution, effective after the U.S. markets opened on June 28, 2021.
• On June 28, 2021, announced hiring Nikki Jackson and broadening of pathology services to include medical device pathology.

Subsequent Events

• On July 12, 2021, announced the acquisition of assets from MilliporeSigma’s BioReliance® portfolio to expand genetic toxicology offering and hiring of Gopala Krishna, PhD, to build and lead the genetic toxicology business.
• On July 15, 2021, announced the acquisition of laboratory instrumentation to accelerate the startup and development of laboratory services pursuing cell and gene therapy as well as traditional biotherapeutics and immunotherapies.
• On August 2, 2021, announced the acquisition of Gateway Pharmacology Laboratories for increased drug metabolism & pharmacokinetics (DMPK) technology and capability, as well as a new cell and molecular biology suite capable of delivering in vitro solutions in pharmacology and toxicology early in drug discovery.
• Received notice that the PPP loan was forgiven for $4.9 million.

Robert Leasure, Jr., the Company’s President and Chief Executive Officer, commented, “We have made significant progress in our strategy to amass the critical building blocks for serving our predominantly emerging biopharma client base across the entire drug discovery and preclinical development continuum.   Our strategy consists of (1) the expansion of existing operations and services, (2) the startup of new services, and (3) the acquisition of strategic assets. Our recent acquisitions of HistoTox Labs and Bolder BioPATH have been performing ahead of our expectations and now comprise our Boulder, Colorado, operations. We also acquired Missouri-based Gateway Pharmacology Laboratories, which enhances our expertise in cardiovascular and renal pharmacology studies. In May 2021, we purchased the St. Louis facility and commenced the location’s expansion, which is expected to add 20,000 square feet of capacity in the second quarter of fiscal 2022. We announced the startup of multiple new services and added assets and personnel to those services. We purchased key genetic toxicology assets from MilliporeSigma’s BioReliance® portfolio, which will help accelerate the startup of our genetic toxicology business. We acquired modern cell and molecular biology instrumentation from a Tennessee-based laboratory that ceased operations in order to accelerate the startup of our biotherapeutics business, and we recently announced the hiring of a leader to build our device histology and pathology business.   We also have continued to make other strategic investments in G&A, including in our people, infrastructure, systems, and services.”

Mr. Leasure concluded, “Reported earnings this quarter were impacted by our strategic investments in internal startup costs, acquisition-related expenses, and recruiting and retention-related expenses. We believe the investments we are making today will augment future growth and deliver higher operating margins and improved service for our clients over time. Looking ahead, we see tremendous cross-selling opportunities across our integrated services and will continue to strive to deliver superior client experiences.   Our optimism for continued strong, near-term growth is reinforced by our recent acquisitions and current expansion plans and new services, combined with our quarter-end backlog of $62.0 million.”

Q3 FY 2021 Review

Revenue increased 45.2% to $22.9 million, compared with $15.8 million in Q3 FY 2020 which was primarily driven by our service segment. Service segment revenue for Q3 FY 2021 increased 47.6% to $21.9 million, from $14.9 million in the prior year period. The increase in Service revenue was due to internal growth year over year as well as two months of revenue from the acquisitions of HistoTox Labs and Bolder BioPATH in Q3 FY 2021.

Cost of Service revenue as a percentage of Service revenue decreased to 67.1% in Q3 FY 2021, from 68.1% in the prior year period, reflecting greater utilization of recently expanded capacity.

Product segment revenue increased 6.0% to $1.0 million in Q3 FY 2021, from $0.9 million in the prior year period.  

Cost of Product revenue as a percentage of Product revenue decreased to 56.3% in Q3 FY 2021 from 64.4% in the prior year period, due to expense reductions implemented in the last half of FY 2020 and improved margins on existing sales.

Operating expenses increased by 68.7%, or $3.8 million, as the Company continued to build the infrastructure for growth, which included additional headcount, recruiting, relocation expense, sales commissions, non-cash stock compensation expense, costs associated with acquisitions and investments in building out new service offerings. Additionally, there was an increase in selling expenses due to an increase in travel cost as our sales and marketing teams have traveled more as the COVID-19 pandemic eases and an increase in commissions due to higher sales awards. During Q3 FY 2021, we began investing in additional service offerings that we brought in house such as laboratory solutions, medical device pathology, biotherapeutics and genetic toxicology.

The Company believes that unallocated corporate G&A as a percent of revenue will decline over the long-term as it continues to scale and grow its business. The Company’s long-term objective is for unallocated corporate G&A to reach between 6% and 8% of revenue.

Net loss in Q3 FY 2021 totaled $2.3 million, or $(0.15) per diluted share, compared to a net loss of $0.9 million, or $(0.08) per diluted share in Q3 FY 2020.

Adjusted EBITDA increased to $2.2 million in Q3 FY 2021, compared to $894,000 in Q3 FY 2020.

9M FY 2021 Review

Total revenue increased 33.2% to $59.5 million in 9M FY 2021, from $44.7 million in the prior year period which was driven primarily by our Service segment. Service segment revenue for 9M FY 2021 increased 34.8% to $56.9 million, from $42.2 million in the prior year period. The majority of the increase in revenue was due to internal growth, augmented by $4.3 million of incremental revenue from two months of revenue from the acquisitions of HistoTox Labs and Bolder BioPATH in Q3 FY 2021.

Cost of Service revenue as a percentage of Service revenue decreased to 67.2% in 9M FY 2021, from 69.0% in the prior year period. The reduction in Cost of Service revenue as a percentage of Service revenue is due primarily to improved operating leverage and the greater utilization of recently expanded capacity.

Product segment revenue increased 6.4% to $2.7 million in 9M FY 2021, from $2.5 million in the prior year period, reflecting higher sales of analytical instruments, partially offset by a decrease in Culex in-vivo sampling systems and other instruments.  

Cost of Product revenue as a percentage of Product revenue in 9M FY 2021 decreased to 55.3%, from 68.9% in the prior year period, due to expense reductions implemented in the last half of FY 2020 and improved margins on existing sales.

Operating expenses in 9M FY 2021 increased year over year by 42.0%, or $6.5 million, as the Company continued to build the infrastructure for anticipated growth, which included additional headcount, recruiting, relocation expense, sales commissions, non-cash stock compensation expense, costs associated with acquisitions and investments in business development to build out new service offerings. For the 9M FY 2021, we began investing in additional service offerings such as software solutions and human resources to support existing internal expertise in the area of SEND (Standard for the Exchange of Nonclinical Data) data management and delivery investments in SEND reporting, safety pharmacology, clinical pathology, medical device pathology, biotherapeutics and genetic toxicology.

Net loss for 9M FY 2021 totaled $3.4 million, or $(0.27) per diluted share, compared to a net loss of $2.9 million, or $(0.27) per diluted share, in the prior year period.

Adjusted EBITDA increased to $5.0 million for 9M FY 2021, compared to $2.6 million for 9M FY 2020.

Cash Provided by Operating Activities and Financial Condition

As of June 30, 2021, the Company had $24.7 million in cash and cash equivalents, a $0 balance and $5.0 million of availability on its general line of credit, and a $0.9 million balance on a $3.0 million equipment loan that is available until April 30, 2022.

In April 2021, the Company completed a public offering of 3,044,117 common shares. The net proceeds after deducting the underwriting discount and offering expenses payable by the Company were approximately $49.0 million. A portion of the proceeds was used in April 2021 to close the acquisitions of HistoTox Labs and Bolder BioPATH.

Cash provided by operating activities was $8.0 million for 9M FY 2021, compared to $1.6 million in 9M FY 2020. For the nine months ended June 30, 2021, cash from operations, cash on hand, $1.3 million from an equipment line of credit and borrowings on a term loan of $2.1 million together funded capital expenditures of $8.4 million for the investment in laboratory equipment to increase capacity at all locations, facility improvements at the Fort Collins location and the purchase of our St. Louis facility.

Conference Call

Management will host a conference call on Wednesday, August 11, 2021, at 4:30 pm ET to discuss third quarter reported results for fiscal year 2021.

Interested parties may participate in the call by dialing:

• (877) 407-9753 (Domestic)
• (201) 493-6739 (International)

The live conference call webcast also will be accessible in the Investors section of the Company’s website, and directly via the following link:
https://78449.themediaframe.com/dataconf/productusers/bas2/mediaframe/46120/indexl.html

For those who cannot listen to the live broadcast, an online webcast replay will be available in the Investors section of Inotiv’s web site at: https://www.inotivco.com/investors/investor-information/.

Non-GAAP to GAAP Reconciliation

This press release contains financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP), including Adjusted EBITDA for the three and nine months ended June 30, 2021 and 2020 and selected business segment information for those periods. Adjusted EBITDA as reported herein refers to a financial performance measure that excludes from net income (loss) income statement line items interest expense and income taxes (benefit) expense, as well as non-cash charges for depreciation and amortization, stock option (benefit) expense, United Kingdom lease liability reversal benefit, non-recurring acquisition and integration costs and other non-recurring third-party costs, such as recruiting costs, consulting fees related to the adoption of two accounting standards, and expenses for rebranding and new website launch. The adjusted business segment information excludes from operating income and unallocated corporate G&A these same expenses.

The Company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the Company’s ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to the adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources. Investors should consider these non-GAAP measures as supplemental and in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.

Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and to illustrate our results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.

About the Company

Inotiv, Inc. is a leading contract research organization specializing in nonclinical and analytical drug discovery and development services. The Company focuses on developing innovative services supporting its clients’ discovery and development objectives for improved decision-making and accelerated goal attainment. The Company’s products focus on increasing efficiency, improving data, and reducing the cost of taking new drugs to market. Visit inotivco.com  for more information about the Company.

This release may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks and uncertainties related to changes in the market and demand for our services and products, the development, marketing and sales of products and services, changes in technology, industry and regulatory standards, the timing of acquisitions and the successful closing, integration and business and financial impact thereof, the impact of the COVID-19 pandemic on the economy, demand for our services and products and our operations, including the measures taken by governmental authorities to address the pandemic, which may precipitate or exacerbate other risks and/or uncertainties and various other market and operating risks, including those detailed in the Company’s filings with the U.S. Securities and Exchange Commission.

Company Contact		Investor Relations
Inotiv, Inc.		The Equity Group Inc.
Beth A. Taylor, Chief Financial Officer		Kalle Ahl, CFA
(765) 497-8381		(212) 836-9614
[email protected]		[email protected]
		Devin Sullivan
		(212) 836-9608
		[email protected]

Financial Tables Follow:

INOTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)
(unaudited)

	Three Months Ended			Nine Months Ended
	June 30,			June 30,
	2021	2020		2021	2020
Service revenue	$21,924	$14,852		$56,858	$42,185
Product revenue	968	913		2,671	2,510
Total revenue	22,892	15,765		59,529	44,695
Cost of service revenue	14,701	10,113		38,204	29,119
Cost of product revenue	545	588		1,477	1,730
Total cost of revenue	15,246	10,701		39,681	30,849
Gross profit	7,646	5,064		19,848	13,846
Operating expenses:
Selling	950	692		2,343	2,672
Research and development	107	105		290	429
General and administrative	7,813	4,624		18,584	12,205
Start-up	479	120		841	232
Total operating expenses	9,349	5,541		22,058	15,538
Operating loss	(1,703)	(477)		(2,210)	(1,692)
Interest expense	(449)	(382)		(1,163)	(1,085)
Other income	1	1		180	13
Net loss before income taxes	(2,151)	(858)		(3,193)	(2,764)
Income tax expense	114	21		161	129
Net loss	($2,265)	($879)		($3,354)	($2,893)
Basic net loss per share	($0.15)	($0.08)		($0.27)	($0.27)
Diluted net loss per share	($0.15)	($0.08)		($0.27)	($0.27)
Weighted common shares outstanding:
Basic	14,656	10,910		12,274	10,807
Diluted	14,656	10,910		12,274	10,807

Note –
Certain prior quarter and year to date amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

INOTIV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

	June 30,			September 30,
	2021			2020
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$24,660			$1,406
Accounts receivable
Trade, net of allowance of $500 at March 31, 2021 and $561 at September 30, 2020	15,487			8,681
Unbilled revenues and other	4,472			2,142
Inventories, net	977			700
Prepaid expenses	2,466			2,371
Total current assets	48,062			15,300
Property and equipment, net	44,678			28,729
Operating lease right-of use-assets, net	8,695			4,001
Finance lease right-to use assets, net	66			4,778
Goodwill	45,750			4,368
Other intangible assets, net	24,336			4,261
Lease rent receivable	106			75
Other assets	180			81
Total assets	$171,873			$61,593
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$4,724			$3,196
Restructuring liability	—			168
Accrued expenses	4,741			2,688
Customer advances	19,969			11,392
Capex line of credit	931			2,613
Current portion on long-term operating lease	1,916			866
Current portion of long-term finance lease	29			4,728
Current portion of long-term debt	14,752			5,991
Total current liabilities	47,062			31,642
Long-term operating leases, net	6,884			3,344
Long-term finance leases, net	39			44
Long-term debt, less current portion, net of debt issuance costs	28,700			18,826
Deferred tax liabilities	294			141
Total liabilities	82,979			53,997
Shareholders’ equity:
Preferred shares, authorized 1,000,000 shares, no par value:
No Series A shares at June 30, 2021 and 25 Series A shares at September 30, 2020 issued and outstanding at $1,000 stated value	—			25
Common shares, no par value:
Authorized 19,000,000 shares; 15,866,655 issued and outstanding at June 30, 2021 and 10,977,675 at September 30, 2020	3,928			2,706
Additional paid-in capital	110,230			26,775
Accumulated deficit	(25,264	)		(21,910	)
Total shareholders’ equity	88,894			7,596
Total liabilities and shareholders’ equity	$171,873			$61,593

INOTIV, INC.

RECONCILIATION OF GAAP TO NON-GAAP EARNINGS

(In thousands)
(Unaudited)

	Three Months Ended								Nine Months Ended
	June 30,								June 30,
		2021				2020				2021				2020
GAAP Net income (loss)	$	(2,265	)		$	(879	)		$	(3,354	)		$	(2,893	)
Add back (a):
Interest expense	$	449			$	382			$	1,163			$	1,085
Income taxes (benefit) expense	$	114			$	21			$	161			$	129
Depreciation and amortization	$	1,958			$	1,074			$	4,184			$	2,747
Stock option expense	$	580			$	176			$	1,040			$	380
United Kingdom lease liability reversal benefit (1)	$	–			$	(79	)		$	(179	)		$	(208	)
Acquisition and integration costs (2)(3)	$	899			$	–			$	1,128			$	339
Start up costs	$	479			$	120			$	841			$	232
Other non-recurring, third-party costs		–			$	79				–			$	782
Adjusted EBITDA (b)	$	2,214			$	894			$	4,984			$	2,593

(a) Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2021 and 2020 include, but are not limited to, the following:

(1) We benefited from the initial reduction in our United Kingdom lease liability for a portion of the reserve for lease related liabilities that were no longer owed due to the statute of limitations.
(2) For the three and nine months ended June 30, 2021, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of HistoTox Labs and Bolder BioPATH.
(3) For the nine months ended June 30, 2020, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of HistoTox Labs and Bolder BioPATH.

(b) Adjusted EBITDA – Earnings before interest expense, income taxes (benefit) expense, depreciation and amortization, stock option expense, United Kingdom lease liability reversal benefit and foreign currency impact on liability, non-recurring acquisition and integration costs, startup costs and other non-recurring third-party costs.

RECONCILIATION OF GAAP TO NON-GAAP SELECTED BUSINESS SEGMENT INFORMATION

(In thousands)
(Unaudited)

	Three Months Ended				Nine Months Ended
	June 30, 2021				June 30, 2021
	2021		2020		2021		2020
Services
Revenue	$21,923		$14,852		$56,858		$42,185
Operating income	3,035		2,445		9,024		6,393
Operating income as a % of total revenue	13.3%		15.5%		15.2%		14.3%
Add back (c):
Depreciation and amortization	1,720		832		3,465		2,176
Stock option expense	–		–		–		(17)
United Kingdom lease liability reversal benefit (4)	–		–		–		–
Acquisition and integration costs (5)(6)	–		–		–		–
Start up costs	479		120		841		232
Other non-recurring, third party costs	–		79		–		782
Total non-GAAP adjustments to operating income	$2,199		$1,031		$4,306		$3,173
Non-GAAP operating income (d)	$5,234		$3,476		$13,330		$9,566
Non-GAAP operating income as a % of total revenue	22.9%		22.0%		22.4%		21.4%
Products
Revenue	$969		$913		$2,671		$2,510
Operating income/(loss)	61		24		202		(447)
Operating income/(loss) as a % of total revenue	0.3%		0.2%		0.3%		-1.0%
Add back (c):
Depreciation and amortization	7		7		26		19
Stock option expense	–		–		–		–
United Kingdom lease liability reversal benefit	–		–		–		–
Acquisition and integration costs (5)(6)	–		–		–		–
Start up costs	–		–		–		–
Other non-recurring, third party costs	–		–		–		–
Total non-GAAP adjustments to operating income/(loss)	$7		$7		$26		$19
Non-GAAP operating income/(loss) (d)	$68		$31		$228		$(428)
Non-GAAP operating income/(loss) as a % of total revenue	0.3%		0.2%		0.4%		-1.0%
Unallocated Corporate G&A	$(4,799)		$(2,946)		$(11,436)		$(7,638)
Unallocated corporate G&A as a % of total revenue	-21.0%		-18.7%		-19.2%		-17.1%
Add back (c):
Depreciation and amortization	231		235		693		552
Stock option expense	580		176		1,040		397
United Kingdom lease liability reversal benefit	–		(79)		(179)		(208)
Acquisition and integration costs (5)(6)	899		–		1,128		339
Start up costs	–		–		–		–
Other non-recurring, third party costs	–		–		–		–
Total non-GAAP adjustments to unallocated corporate G&A	$1,710		$332		$2,682		$1,080
Non-GAAP unallocated corporate G&A	$(3,089)		$(2,614)		$(8,754)		$(6,558)
Non-GAAP unallocated corporate G&A as a % of total revenue	-13.5%		-16.6%		-14.7%		-14.7%
Total
Revenue	$22,892		$15,765		$59,529		$44,695
Operating (loss)	(1,703)		(477)		(2,210)		(1,692)
Operating (loss) as a % of total revenue	-7.4%		-3.0%		-3.7%		-3.8%
Add back (c):
Depreciation and amortization	1,958		1,074		4,184		2,747
Stock option expense	580		176		1,040		380
United Kingdom lease liability reversal benefit (4)	–		(79)		(179)		(208)
Acquisition and integration costs (5)(6)	899		–		1,128		339
Start up costs	479		120		841		232
Other non-recurring, third party costs	–		79		–		782
Total non-GAAP adjustments to operating (loss)	$3,916		$1,370		$7,014		$4,272
Non-GAAP operating income (d)	$2,213		$893		$4,804		$2,580
Non-GAAP operating income as a % of total revenue	10%		6%		8%		6%

(c) Adjustments to certain GAAP reported measures for the three and nine months ended June 30, 2021 and 2020 include, but are not limited to, the following:

(4)   We benefited from the initial reduction in our United Kingdom lease liability for a portion of the reserve for lease related liabilities that were no longer owed due to the statute of limitations.
(5)   For the three and nine months ended June 30, 2021, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of HistoTox Labs and Bolder BioPATH.
(6)   For the nine months ended June 30, 2020, charges for legal services, accounting services, travel, and other related activities in connection with the acquisitions of HistoTox Labs and Bolder BioPATH.

(d) Adjusted operating income – Operating income before depreciation and amortization, stock option expense, United Kingdom lease liability reversal benefit and foreign currency impact on liability, non-recurring acquisition and integration costs, start up costs and other non-recurring third-party costs.